1. Introduction Thank you for this opportunity to study your recent ERP implementation project and assess the value of the investment at this time. I will provide you a data brief of the current status, and I’ll offer guidance to propel you toward full realization of your investment. In short, the current status of your project is not projected to realize its planned ROI. In fact, you’ve incurred additional costs that could have been avoided. I will guide you through my findings about past efforts, successes and failures, causes, and recommendations for restarting your ERP implementation project. With these recommendations you will have the information you need to plan, to put the project back on course, and to realize the full value and benefits of your investment. 2. Findings 2.1 Employee Involvement • Employees were involved in the vetting process. They spent months completing a study to justify expenditures for the new system. However, all later guidance and decision making for implementation were in the sole purview of the executive steering committee and guidance of outside consultants. • Employee involvement was lacking in implementation. • Training was lacking in implementation. • Management support was inconsistent in implementation. • Too much time-consuming and technical work was assigned to employees who did not have ERP expertise or proper training. • Improper selection of employees. 2.2 Employee Recognition • No additional incentive nor
The implementation of an Enterprise Resource Planning System (ERP) system is very complex, and it needs to have a well design implementation plan, well-structured approach, and will require substantial changes on staff and work processes. In the case of Bombardier, the company have learned valuable lessons from their previous implementation process to help them to achieve the project goals. For example: after the implementation at the Mirabel plant, the company decided to add more training material as well as one day refreshers course since they recognized the importance of user preparation. They realized that the project needs to be a manager’s project and no just IT. Also, they senior management made the project a clear priority, and ensure
Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf
Today Enterprise Resource Planning (ERP) is extensively adopted by many organizations regardless of kind and size, mainly because it provides enterprise-wide view of information across all their business operations and help organizations achieve consistency across all their functional departments. The potential benefits of ERP system implementation include improved coordination across functional areas, increased efficiency, reduced operational costs, rapid access to information for decision making, managerial control and support for strategic planning.
The recommendation from the Boston Consulting Group was to implement an ERP system in manageable intervals over a three to five year period, but internal NIBCO selection team endorsed a “big bang” approach to leadership team for a number of reasons (Brown, DeHaynes, Hoffer, Martin, & Perkins, 2012). While there was a cost savings under the big bang approach, there appeared to be more important reasons including: fear of complacency with partial implementation, poor success ratio with delayed implementations, and business needs that urged a compressed implementation timeline.
ERP Implementation Babin Kunjappa Florida Institute of Technology Course: MGT5115 | Term: Summer 1 2015 Course name: Global Information Technology Management Professor: Dr.Nabie Conteh Date: June 19, 2015 ERP Implementation CHALLENGES, CHANGES AND BENEFITS OVER LEGACY SYSTEMS, AND CRITICAL SUCCESS FACTORS FOR ACHIEVING GOALS 1 1 TABLE OF CONTENTS Abstract .................................................................................................................................. 2 1.
ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.
The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.
The project was conducted into four large phases, preparation, analysis, design and implementation. IS teams were capable of building scripting tools to assist with the project. NIBCO team members learned to apply an R/3 big bang implementation because IBM changed management approach was not ERP-specific. NIBCO’s also faced some problems implementing ERP SAP.
To help the company get back on track, the following three ERP modules are recommended as a start for the company. These modules will help the company integrate data across its plant sites, generate timely reports so the leadership can make real time decisions, and streamline the work processes across Stoney’s facilities (Annabi, 2015).
ERP (Enterprise Resource Planning) implementation is regarded as complex, cumbersome and costly, and, very often, it exceeds the initial estimated resources. The process involves a thorough examination of the business processes in the organisation; selection of the best available software solution that matches the requirements of the enterprise; configuration of the selected systems;, training of staff; and customisation of the selected software solutions including
To determine the feasibility of this project a number of factors must be considered, the first being the economic feasibility. Economic feasibility takes into consideration the overall cost of implementation and maintenance of the ERP system. It asks the questions of rather there be any cost savings through implementation of an ERP? Can be ERP increase the revenue for Riordan? And over time, will investment into the ERP decrease (O’Brien & Marakas, 2009)? In general, it must justify that the overall cost of the ERP give an adequate return of investment (ROI) back to Riordan (Motiwalla & Thompson, 2009).
MedDev is looking to streamline their resource planning across various departments in order to support their global growth and cut costs. In order to achieve this business objective, they are undertaking ERP Implementation as a Key project which involves largest investment MedDev has ever done as a single project. Thus success of this project is of prime importance to them.
There are two basic types of ERP research, implementation-oriented and performance-oriented. The first type studies what factors foster success in implementing ERP, while the second investigates factors in ERP that affect performance. Research has shown that companies that use ERP outperform those that do not in functional efficiency, productivity, stock market, and financial metrics. Interestingly, ERP is found to have a neutral or negative effect on customer satisfaction and operating expenses. More predictably, general performance dips
The objective of the aforementioned piece was to carry out a process of analysis, valuation and discovery of potential risks linked with the post-implementation of ERP. The writers conducted this observational and factual quest using a perceptible path. They facilitated and implemented an inferential research design that stood on a review of cross-inspection queries for 118 major bodies to introspect the prospective liabilities of ERP post-implementation. Nonetheless, some impediments should be taken into account. This
Anderson (2014) said “ERP implementations rarely fail in formulation; however, they frequently fail in implementation.” It does not in with just purchasing an ERP system. A well designed implementation plan is the company’s ticket to success. A well designed implementation plan addresses all potential bottlenecks like execution problems such as lack of training, attitude and participation of the entire workforce from leaders to staff, and member selection for the whole ERP project implementation team. An ERP project is